HK Stock Market Move | Engineering machinery stocks surged in early trading, with the planned issuance of 25-year special bonds reaching a record high of 4.4 trillion RMB. The situation of project commencements after the holiday is gradually improving.

In early trading, construction machinery stocks surged, as of the time of writing, ZOOMLION(01157) rose by 8.03% to 6.46 Hong Kong dollars; Sinotruk Jinan Truck(03808) rose by 2.96% to 22.6 Hong Kong dollars; LONKING(03339) rose by 1.72% to 1.77 Hong Kong dollars; SANY INT'L(00631) rose by 1.68% to 4.84 Hong Kong dollars. On the news front, the government work report for 2025 clearly stated that local government special bonds will be arranged at 4.4 trillion yuan, an increase of 500 billion yuan from the previous year, focusing on investment in construction, land acquisition and storage, purchasing of existing commercial housing, and clearing local government arrears to enterprises. In addition, according to today's construction machinery data, the China construction machinery market index in February 2025 was 106.68, an increase of 13.53% year-on-year and 5.44% month-on-month. The CMI index in February saw a year-on-year increase of 10.26 percentage points and a month-on-month increase of 8.77 percentage points. Soochow pointed out that the construction machinery sector is showing a clear spring enthusiasm, and a significant uptrend is expected to appear in March-April. Analyzing the trend of the construction machinery sector from 2021 to 2025, the sector generally experiences a two-week period of excess gains in March-April. In 2025, with the recovery of excavator sales in the domestic market, a significant spring enthusiasm trend is expected to emerge. The spring enthusiasm is mainly driven by policy guidance, with the construction machinery sector entering a peak season of construction and sales. Influenced by factors such as budget release, resumption of work after the Spring Festival, favorable weather, policy support after the Two Sessions, and market promotions, the first quarter is usually the peak season for construction machinery construction and sales.